Bitcoin Hits New $112,000 ATH as Market Capitalization Recaptures $3.47T
Bitcoin (BTC) surged past the $112,000 mark on Wednesday to reach a new all-time high (ATH), climbing 5.95% over the past week amid growing global investor demand for risk assets.
This new Bitcoin ATH followed the total cryptocurrency market capitalization recapturing the $3.47 trillion threshold.
Despite this gain, the overall crypto market remains below its previous all-time high exceeding $3.73 trillion, set in December 2024.
Analysts Weigh In on Rally Drivers
According to analysts at the Bitfinex exchange, the recent price appreciation signals a reset in over-leveraged participants.
“The convergence between on-chain accumulation and off-chain exchange order flow paints a compelling picture: this rally has been built on solid ground, supported by real capital flows rather than short-lived speculative leverage.”
The analysts added that maintaining bullish momentum will require sustained dominance of spot buyers.
This rally occurred shortly after President Trump announced new tariffs on Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, while Japan saw its tariff rate set to increase to 25%, effective August 1st.
Bitcoin as a Saf haven Asset?
Katalin Tischhauser, Head of Research at Sygnum Bank, attributed the uptrend since April 2 (“Liberation Day”) to Bitcoin’s increasing perception as a safe-haven asset.
“This [outperformance] has been supported by Bitcoin’s increasing status as a safe haven asset in the face of fiat debasement, also confirmed by the first US state signing a Bitcoin reserve bill into law, following the federal Bitcoin reserve established by Executive Order.”
Tischhauser further suggested Bitcoin’s lower exchange reserves (falling to 2.99 million BTC from over 3.11 million) indicate growing long-term confidence.
Related: GENIUS Act ‘legitizes’ stablecoins for global institutional adoption
About Bitcoin: Bitcoin more of a ‘diversifier’ than safe haven asset: Report
